China Telecom readies to become Philippines’ third telecom player

China Telecom, one of the largest telecom operators in China, has been proposed by the government in Beijing to enter the Philippine market as third operator for landline, mobile and broadband services.

The decision came after Chinese telecom companies have been invited by Philippine President Rodrigo Duterte to participate in his country’s telecom industry, which is currently dominated by just two large companies, PLDT Inc. and Globe Telecom. whose customers frequently complain about mediocre services.

Duterte in November offered China the “privilege” of challenging the long-standing duopoly and stir up competition in the industry.

“The Chinese government selected China Telecom to invest in the Philippines upon invitation by President Duterte during the bilateral meeting last November 16,” said Eliseo Rio, secretary of the Department of Information and Communications Technology.

However, foreign telecom firms cannot operate on their own in the Philippines but need a local majority partner. In this case, China Telecom would have to enter in a joint venture on a 60-40 basis, Rio said.

No respective deal has been reached yet. According to a China Telecom statement, the company is now “studying” a market entry in the Philippines.

Hong Kong-listed China Telecom currently ranks as the world’s seventh largest mobile network operator, serving 244.8 million mobile subscribers as of October 2017. The company, which posted total revenue of $49 billion last year, is also China’s biggest fixed-line network operator.

China Telecom, one of the largest telecom operators in China, has been proposed by the government in Beijing to enter the Philippine market as third operator for landline, mobile and broadband services.

The decision came after Chinese telecom companies have been invited by Philippine President Rodrigo Duterte to participate in his country’s telecom industry, which is currently dominated by just two large companies, PLDT Inc. and Globe Telecom. whose customers frequently complain about mediocre services.

Duterte in November offered China the “privilege” of challenging the long-standing duopoly and stir up competition in the industry.

“The Chinese government selected China Telecom to invest in the Philippines upon invitation by President Duterte during the bilateral meeting last November 16,” said Eliseo Rio, secretary of the Department of Information and Communications Technology.

However, foreign telecom firms cannot operate on their own in the Philippines but need a local majority partner. In this case, China Telecom would have to enter in a joint venture on a 60-40 basis, Rio said.

No respective deal has been reached yet. According to a China Telecom statement, the company is now “studying” a market entry in the Philippines.

Hong Kong-listed China Telecom currently ranks as the world’s seventh largest mobile network operator, serving 244.8 million mobile subscribers as of October 2017. The company, which posted total revenue of $49 billion last year, is also China’s biggest fixed-line network operator.